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Better Protection of Trade Secrets

If you want to prevent essential operational information from reaching the public or competitors, consider signing a confidentiality agreement with new business partners. Here you can find a template for such a "Non-Disclosure Agreement".

Special production processes, proprietary formulations, customer contacts – the potential trade secrets list is extensive. Protecting them is critically important for many companies. However, the conditions companies must meet for optimal trade secret protection have become stricter. Therefore, the German Chamber of Commerce and Industry's legal committee has developed practical assistance.

Registered rights such as patents, trademarks, utility models, and design rights are highly relevant for companies. Other crucial knowledge, such as production processes, unique techniques, recipes, calculation documents, and customer or supplier contacts, may qualify as protectable trade secrets. Companies should carefully evaluate which elements of their operations are significant and require trade secret protection.

Trade secrets, as legally defined, are information that is not generally known or readily accessible to individuals who deal with such types of information.

Trade secrets need stricter safeguarding

The German Trade Secrets Act (GeschGehG), effective from April 26, 2019, imposes stricter requirements for securing trade secrets. They must be appropriately safeguarded and not readily accessible.

It is no longer sufficient to merely claim that a trade secret has been violated. Especially in scenarios like initiating business relationships or collaborations for product development, companies often must reveal internal information that qualifies as trade secrets.

Non-Disclosure Agreements

In practice, confidentiality agreements, or Non-Disclosure Agreements (NDAs), are used to protect trade secrets. A group of corporate lawyers and members of the German Chamber of Commerce and Industry's legal committee has proposed contractual arrangements for this purpose.

Template for a "Non-Disclosure Agreement"

The resulting template for a "Non-Disclosure Agreement", which does not replace specific legal advice, serves as a drafting and checklist tool. It includes prototype and sample creation and extends beyond the trade secret definition in GeschGehG.

Trade Secret Contract Information (English) (PDF, 175 KB)

 

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Porträtfoto Jennifer Evers

Jennifer Evers

Director Alternative Dispute Resolution (SGH), Law of the Digital Economy and Legal Tech | In-House Lawyer